McGrath is located 221 miles northwest of Anchorage and 269 miles southwest of Fairbanks in Interior Alaska. It is adjacent to the Kuskokwim River, directly south of its confluence with the Takotna River.

McGrath lies in the continental climate zone, characterized by about 20 inches of average annual precipitation and an average temperature of about 22 °F. Temperature extremes are greater in the Continental zone than in the other climatic zones. The coldest month in 2013 was February, with a mean minimum temperature of -9.3 °F. The warmest month was June, with a mean maximum temperature of 74.6 °F. The Kuskokwim River is generally ice-free from June through October.

McGrath was a seasonal Upper Kuskokwim Athabascan village that was used as a meeting and trading place for Big River, Nikolai, Telida, and Lake Minchumina residents. The Old Town McGrath site was originally located across the river. In 1904, Abraham Appel established a trading post at the old site. In 1906, gold was discovered in the Innoko District and at Ganes Creek in 1907. Since McGrath is the northernmost point on the Kuskokwim River accessible by large riverboats, it became a regional supply center. By 1907, a town was established and named for Peter McGrath. In 1909, the Alaska Commercial Company opened a store. The Iditarod Trail also contributed to McGrath's role as a supply center. From 1911 to 1920, hundreds of people walked and mushed over the trail on their way to the Ophir gold districts. Mining sharply declined after 1925. After a major flood in 1933, some residents decided to move to the south bank of the river. Changes in the course of the river eventually left the old site on a slough, useless as a river stop. In 1937, the Alaska Commercial Company opened a store at the current location. In 1940, an airstrip was cleared, the FAA built a communications complex, and a school was opened. McGrath became an important refueling stop during World War II as part of the Lend-Lease Program between the U.S. and Russia. In 1964, a new high school was built, attracting boarding students from nearby villages. The city was incorporated in 1975. The federally recognized Tribe in McGrath was established in 1993.

Culture

Slightly more than half of the population are Athabascans and Eskimos. As a regional center, McGrath offers a variety of employment opportunities, but subsistence remains an important part of the local culture.

McGrath is not connected to Alaska's road system, but local roads are used by ATVs and trucks. Winter trails are marked to Nikolai (50 mi) and Takotna (20 mi). Residents rely on air service and barges to deliver cargo. Air facilities include a state-owned asphalt runway with a crosswind landing strip. The Kuskokwim River is the seaplane base. A boat launch ramp site is available. The river is used for travel when it's frozen during the winter months.